s Manual.

Insurance

You must obtain and maintain at your own expense the minimum insurance coverage that we and the Franchise's lease periodically require, and you must meet the other insurance-related obligations in the Franchise Agreement. You may elect to purchase more coverage than we require. The coverages listed below reflect only minimum coverage limits for each franchise location. As of the issuance date of this disclosure document, we require you to maintain the following coverages:

• (a) broad form commercial general liability coverage, on an occurrence form, including: errors and omissions, food borne illness, dram shop/liquor liability, premises and operations, products and completed operations, personal and advertising injury, broad form contractual, and employers liability; against claims for bodily injury, personal injury, including death, and property damage with minimum limits of not less than $1,000,000 per occurrence and $2,000,000 aggregate for each coverage;
• 18 Afuri Franchise Disclosure Document

• (b) all risk property insurance including equipment breakdown for the full replacement cost sufficient to cover all business personal property including contents, leasehold improvements, furniture, fixtures, equipment, and signs;
• (c) loss of income including extra expense insurance with sufficient limits to cover all ongoing expenses, including, future profits, royalty fees, advertising contributions, ordinary payroll for competent personnel and other fixed expenses for a minimum of 24 months from the date of loss;
  • (d) worker's compensation and employer's liability insurance in statutory amounts;
  • (e) plate glass insurance (if applicable);
  • (f) blanket employee dishonesty coverage with minimum limits of not less than $50,000;
• (g) business automobile liability, including bodily injury and property damage coverage for all owned, non-owned and hired vehicles, with limits of not less than $1,000,000 per occurrence;
• (h) monies and securities (crime) coverage with limits of not less than $10,000 inside limit and $5,000 outside limit;
• (i) employment practices liability with limits not less than $100,000, with a retro date of the store opening if on a claim made basis.
• (j) commercial umbrella liability insurance with limits not less than $4,000,000 each occurrence. The umbrella liability will be on a following form basis of the underlying policies (commercial general liability, premises and operations, products and completed operations, personal and advertising injury, automobile and employers liability);
• (k) cyber and privacy liability with minimum limits of $25,000 including, crisis management and data extortion expense; and
  • (l) unemployment insurance and state disability as required by governing laws.

You shall also maintain such additional insurance as is necessary to comply with all legal requirements concerning insurance as well as any other insurance required by your landlord. We may periodically increase the amounts of coverage required under such insurance policies and require different or additional kinds of insurance at any time, including higher liability limits, to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards, or other relevant changes in circumstances.

Each insurance policy shall: (1) name us and each of our affiliates, directors, agents and employees (as we may specify) as additional insureds (unless we specify otherwise in writing) on a primary, noncontributory basis and provide a waiver of subrogation rights against us; (2) provide for 30 days' prior written notice to us of any material modification, cancellation, or expiration of the policy; and (3) provide that coverage applies separately to each insured. In the case of property insurance, the Franchisor parties shall be named as their interests may appear. Insurance carriers must be authorized to do business in the state where your Franchise is located, be rated at least A-X with A.M. Best and approved by us. At our discretion, we may require you to purchase your insurance from a specific insurance carrier.

Certificates of Insurance shall name us, and each of our affiliates, directors, agents and employees (as we may specify) as additional insureds (unless we specify otherwise in writing), and include primary, noncontributory and waiver of subrogation endorsements. Certificates shall provide 30 days' notice prior written notice to us of any material modification, cancellation, or expiration of the policy, and due in our office 30 days prior to expiration and coverages listed above.

Item 9 Franchisee's Obligations

FRANCHISEE'S OBLIGATIONS

This table lists your principal obligations under the franchise and other related agreements. It will help you find more detailed information about your obligations in these agreements and in other items of this disclosure document.

Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 22–26)